A Starter for Motor Vehicle Insurance
Motor vehicle insurance also known as automotive insurance is the type of insurance in which the insurance company accepts the loss caused by the accident of a vehicle. The loss can be in the form of damage to property, damage to the car or even deaths. All the terms are already been stated in the policy before the customer gets his vehicle on road. It is mutually agreed between the insurer and the company that what will be the terms and how much insurer has to pay for the policy. Benefits of motor insurance includes the relief which is given to the injured or property holder in case of any untoward incident.
Types of Automotive Insurance
There are two main categories for car insurance. One is Private car insurance and second is commercial car insurance. A private car insurance is held be the person for his own car which he uses for his personal needs. On the other hand, commercial car insurance is held be the persons who use their cars for commercial purposes.
Main types of motor insurance covers include: –
Third Party Car Insurance Policy – This policy provides benefit to the third party which means that anyone whose property is damaged or who gets injured because of your vehicle’s accident gets paid through insurance company.
Own Damage Car Insurance Policy – This type of policy provides cover to the car owner in case of car theft or any damage which occurs the car and whether it is stolen or caught by a fire. It also provides cover to the client in case car is damaged by a natural calamity or terrorist’s attack.
Comprehensive Car Policy – This type of policy covers both third party and own damage car benefits. It offers a valuable protection to the owner in case the car is stolen, theft or damaged in an accident. It equally covers third party benefits as name dictates.
Other Forms of Car Insurance
Some other forms of automotive insurance include: –
- Liability Coverage
- Collision Insurance
- Uninsured Motorist Insurance
- Underinsured Motorist Insurance
- Medical Payments Coverage
- Gap Insurance
- Towing and Labor Insurance
- Rental Imbursement Insurance
If you are driving a car and you met an accident and you don’t have a car insurance, you may have to bear the complete loss by yourself. It is better to have car insurance or else you will end up in a huge loss. Nowadays riots are at peaks in almost every country and if your car becomes the victim and then you will end up a big loss if your car is not insured. No body is going to pay for your loss.
Exclusions in Motor Insurance Policy
Things which are not covered by car insurance companies are as follows: –
- Any mechanical or electrical failure of a vehicle will not be bear by the company. This is what companies state in their policy before making an official agreement with the customer.
- Normal wear and tear along with ageing of the vehicle is also not covered but the car insurance companies.
- Damage caused to the vehicle in case the person driving a vehicle is not in the possession of valid driving license.
- If the vehicle is used for the purpose other than stated in the agreement, company will not bear the loss in case of any untoward incident.
- Any damage which occurs to car, if it is outside the geographical area covered by the company.
Conditions nowadays are most uncertain than ever as there is a layer of instability in almost every country of the world. In such scenario it is very much important to have car insurance so that if any damage occurs to the vehicle, it should be balanced through the policy. Expensive car holders must have insurance policy for their motors.